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This is a ten question multiple-choice quiz covering the material in this Unit. I hope you do well!

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Question 1 of 10

1. Question

10 points

Real Gross Domestic Product can best be described as:

The sum total of all final goods and services produced in a country or area within a certain period of time, adjusted for inflation.

The sum total of all final and intermediate goods and services produced in a country or area within a certain period of time, not adjusted for inflation.

The sum total of all final goods and services produced by domestic and foreign businesses in a country or area within a certain period of time, adjusted for rising interest rates.

The sum of all final and intermediate goods and services and raw materials produced in a country or area within a certain period of time, minus exports and imports of merchandise.

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Question 2 of 10

2. Question

10 points

Let’s say that an economy produces two final goods: cars and corn. During a particular year, it produces 5 cars priced at $20,000 per car, and 30,000 ears of corn each priced at $1. What is this country’s GDP?

$130,000

$70,000

$100,000

30,000

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Question 3 of 10

3. Question

10 points

Of the following which is included in the calculation of this year’s GDP?

The commission earned by a used car dealer this year from selling a car that was produced three years ago.

The value of a used car (excluding the dealer's commission) that is sold this year and produced 3 years ago.

This year's sale of $10,000 worth of shares of General Motors stock.

All of the listed answers are included in this year's GDP.

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Question 4 of 10

4. Question

10 points

An economist estimates that her country’s consumption expenditures this year amount to $15,000, gross private domestic investments are $5,000, and the government spends $10,000 on final goods and services. Exports amount to an estimated $3,000, and imports add up to $4,000. Production of intermediate goods and services are estimated to be $7,000 this year. According to the estimates of this economist, what is this country’s GDP?

$29,000

$36,000

$$37,000

$44,000

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Question 5 of 10

5. Question

10 points

Let’s say that this year a country produces 100 loaves of bread at $3 per loaf, and 2 cars priced at $500 per car. It also produces 10 bags of flour (used in the production of the bread) priced at $1 per bag, and 5 auto parts (used in the production of the cars) priced at $20 each. This country’s capital consumption allowance (depreciation) is $40 and the government collects $60 in taxes. Based on these numbers, what is this country’s Gross Domestic Product (GDP) and what is this country’s Net Domestic Product (NDP) for this year?

GDP is $1,300 and NDP is $1,260.

GDP is $1,400 and NDP is $1,360.

GDP is $1,200 and NDP is $1,300.

None of the listed answers is correct.

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Question 6 of 10

6. Question

10 points

Let’s say that a country produces 20 smart phones each priced at $500 this year, and financial consultants provide a total of $6,000 in consulting services to clients this year. The country’s labor force is 40 people and its population is 80. Based on this data, what is this country’s per capita GDP?

$200

$400

$600

$800

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Question 7 of 10

7. Question

10 points

Let’s say that a country has the following production numbers for these two final goods:
Year 1: 60 gallons of milk at $3 per gallon, and 2 bicycles at $300 per bicycle.
Year 2: 50 gallons of milk at $4 per gallon, and 3 bicycles at $400 per bicycle.
Using year 1 prices as the base year, what are this country’s nominal GDP and real GDP for years 1 and 2?

Nominal GDP in year 1 is $780. Nominal GDP in year 2 is $1,400. Real GDP in year 1 is $780. Real GDP in year 2 is $1,050.

Nominal GDP in year 1 is $780. Nominal GDP in year 2 is $1,200. Real GDP in year 1 is $680. Real GDP in year 2 is $1,400.

Nominal GDP in year 1 is $365. Nominal GDP in year 2 is $457. Real GDP in year 1 is $365. Real GDP in year 2 is $356.

Nominal GDP in year 1 is $780. Nominal GDP in year 2 is $1,050. Real GDP in year 1 is $1,140. Real GDP in year 2 is $1,050.

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Question 8 of 10

8. Question

10 points

Let’s say that a country has the following data for this year:
income from wages = $3,000
income from interest = $500
income from rent = $1,500
income from profits = $800
capital consumption allowance (depreciation) = $200
indirect business taxes = $400
production of illegal goods and services = $900
production of intermediate goods = $600
government expenditures on social programs = $1,500
What is this country’s gross domestic product (GDP) and what is its net domestic product (NDP)?

GDP is $6,400 and NDP is $6,200.

GDP is $9,400 and NDP is $9,200.

GDP is $7,900 and NDP is $7,700.

GDP is $8,500 and NDP is $8,100.

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Question 9 of 10

9. Question

10 points

According to Simon Kuznets and his environmental curve:

As a country's income grows (with a rising standard of living), it first experiences a deteriorating environment, and then an improving environment.

As a country's income grows (with a rising standard of living), it first experiences an improving environment, and then a deteriorating environment.

As a country's income grows (with a rising standard of living), it experiences a continually deteriorating environment.

As a country's income grows (with a rising standard of living), it experiences a continually improving environment.

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Question 10 of 10

10. Question

10 points

According to our text and data from the Bureau of Labor Statistics:

As a country grows economically and becomes more productive, the average citizen's amount of leisure time increases.

As a country grows economically and becomes more productive, the average citizen's amount of leisure time decreases.

As a country grows economically and becomes more productive, the average citizen's amount of leisure time stays relatively constant.

As a country grows economically and becomes more productive, the average citizen's amount of leisure time first increases and then decreases.